An estimated 10,000 baby boomers are retiring each day, which is inevitably having an impact on the real estate market. Builder focus in the single-family 55+ retirement housing market has increased for the second quarter of 2017 with a reading of 66, an 11-point increase over the first quarter of 2017, according to the National Association of Home Builders’ (NAHB) 55+ Housing Market Index (HMI).

It’s not only a significant quarter-to-quarter increase, but also the 13th consecutive quarter with a reading above 50, which means that more builders view conditions as good rather than poor. “Demand for 55+ housing continues to grow, and this quarter’s index is a reflection of that,” says Dennis Cunningham, chairman of NAHB’s 55+ Housing Industry Council. “Consumers in this market want a home that addresses their specific needs.”

There are separate 55+ HMIs for two segments of the 55+ housing market: single-family homes and multifamily condominium homes. For each of the segments, the HMI measures builder sentiment in a survey that asks if current sales, prospective buyer traffic and anticipated six-month sales for that market are good, fair or poor (high, average or low for traffic).

All three components of the 55+ single-family HMI posted increases in comparison to the prior quarter: Expected sales for the next six months rose 12 points to 80 (an index high), while present sales increased eight points to 70 and traffic of prospective buyers jumped 19 points to 53, also an index high.

The 55+ multifamily condo HMI rose seven points to 53, with all three components also posting gains in the second quarter: Present sales increased six points to 56 (an index high), while expected sales for the next six months and traffic of prospective buyers both increased eight points to 55 and 45, respectively.

All four indices tracking production and demand of 55+ multifamily rentals posted gains in the second quarter: Present production increased by three points to 53, expected future production increased by eight points to 52, current demand for existing units increased two points to 66 and expected future demand increased by five points to 67.

“We are seeing strong demand in the 55+ housing sector due to favorable market conditions, such as record highs in the stock market and rising home prices,” says NAHB Chief Economist Robert Dietz. “This quarter’s reading is in line with our forecast, as we expect to see continued gradual gains in 2017.”

Sales of new United States homes decreased by 9.4 percent in July, representing the strongest one-month decreased in close to a year. But the decrease followed strong sales in previous months, and sales so far this year are outperforming last year’s.

The Commerce Department said Wednesday that new-home sales fell to a seasonally adjusted annual rate of 571,000 in July, down from 630,000 in June. Last month’s figure was the weakest since December.

Even so, sales in the first seven months of the year are 9.2 percent higher than in the same period last year. More buyers are turning to newly built houses as the supply of existing homes for sale has fallen consistently.

The housing market overall is healthy for the most part, but sales have stumbled this summer as a supply crunch has elevated average home prices nationwide. The increasing price levels have made homes too expensive for a number of potential buyers, even as healthy hiring has lowered the unemployment rate to a 16-year low of 4.3 percent.

Builders are ramping up the supply of new homes, providing some much needed relief. The number of newly built homes available is still below historical levels but the supply of new homes for sale increased by 1.5 percent in July from June to 276,000. That’s 16.5 percent higher than a year earlier.

That level is considered enough to last 5.8 months at the current sales pace – near the 6 months that is typical in a healthy residential housing market.

By contrast, the number of existing homes for sale decreased by 7.1 percent in June in comparison to the numbers from a year earlier. The larger supply of new homes has kept prices from rising as much as in the market for existing houses. A typical new home sold for $313,700 in July – below the $316,200 average price for all of last year.

Prices for existing homes increased by 5.6 percent in May when compared to the previous year, according to the latest data available via the S&P Case-Shiller home price index.

Of the 902 closed sales on homes in the Naples area for April 2017, 65.3 percent were cash sales and 34.7 percent were conventional mortgage sales, according to the latest report released by the Naples Area Board of REALTORS® (NABOR®). The prior month’s Market Report pointed out the history of cash sales in the area has decreased over the last several years and more buyers are financing the purchase of their homes: 73 percent cash sales in March 2015, 67 percent for March 2016, and 64 percent for March 2015. With a growing number of homebuyers turning to financing in order to purchase a home and a recent survey by real estate data provider Zillow reporting that more than two-thirds of renters consider setting aside money for a downpayment as the number one obstacle to entering the housing market, it is important for potential buyers to be aware of the options available to assist them in getting over the downpayment hurdle.

Here are some tips for potential homebuyers to consider in overcoming the downpayment hurdle include:

Consider beginning to save early on.

Carefully weigh loan options.

Look into lenders offering loans through government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, which only require a 3 percent downpayment or loans offered through the Federal Housing Administration (FHA), which require a 3.5 percent downpayment.

Buyers who are U.S. Military Veterans, service members or residents of specific rural areas may not have a downpayment requirement at all, as the Department of Veterans Affairs and the U.S. Department of Agriculture have zero-downpayment loan programs available for qualified borrowers.

Consider using gift money from relative or friends toward the downpayment amounts or retirement savings.

A large number of downpayment assistance programs exist across the nation as well, for borrowers with low to moderate income, teachers, firefighters, and other public service positions.

With industry leaders indicating a vast and growing number of potential homebuyers are currently interested in entering the housing market, as well as a decreasing number of cash sales in the Naples area, an increasing number of buyers looking to finance the purchase of a home, and clearly expressed concerns about challenges in saving enough money for a downpayment, a clear analysis of all of the options available to potential homebuyers is timely and essential. As the summer residential real estate season begins, potential homebuyers are encouraged to explore the many options available and carefully consider those options as far as requirements for qualification and what will best fit the individual current and future needs of each homebuyer.

The first quarter of 2017 closed strong for the housing market as data recently released by Florida REALTORS® shows the residential real estate market across Florida with higher number of closed sales, higher median prices and a higher number of pending sales for the month of March. There were a total of 25,921 single-family home sales reported for March 2017, representing a 9 percent increase from March 2016.

“March’s strong sales likely were influenced by buyers ready to take action before interest rates could move higher,” says 2017 Florida REALTORS® President Maria Wells. “Higher demand, coupled with a shortage of available homes for sale, continues to put pressure on prices – so buyers are eager to make an offer when they find the right property.”

“That means it’s a good time for sellers to list their homes since they continue to receive a higher sales price as inventory remains scarce,” added Wells. “In March, sellers of existing single-family homes received 96.1 percent (median percentage) of their original listing price, while those selling townhouse-condo properties received 94.7 percent – an indication that the listed price is extremely close to market value.”

The median sales price for single-family existing homes in Florida for March was $231,900, an increase of 10.4 percent from the prior year, according to data released by Florida REALTORS® research department in conjunction with local real estate professional boards/association. The median price for townhomes/condominium homes in March statewide was $171,000 – 9.4 percent higher than one year ago. March marked the 64th consecutive month that statewide median prices for both the single-family home sector and the townhome/condominium home sector increased year-over-year.

The Naples Area Board of REALTORS® Market Report, released Monday, April 17, 2017, posted a solid first quarter for the housing market in the area. According to the report, pending sales increased by 11 percent overall from 1Q 2016 to 1Q 2017. Closed sales increased 14 percent overall from 1Q 2016 to 1Q 2017. Median closed sales price increased by 2 percent overall from 1Q 2016 to 1Q 2017. Inventory increased by 13 percent overall from 1Q 2016 to 1Q 2017.

“March turned out to be one of the strongest months we’ve seen in a long time for sales of existing homes in the Sunshine State,” said Florida REALTORS® Chief Economist Dr. Brad O’Connor. “Sales for both single-family homes and for townhouse-condo units in March marked the fourth-highest monthly total for any single month over the past decade,” O’Connor added.